House boom nears end, surveyors reveal
11:13 20 Feb 2003
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The house price boom looks like it is finally petering out after prices slowed for the fourth consecutive month in January.
The latest Housing Market Survey from Royal Institution of
Chartered Surveyors (RICS), published today (Thursday), indicates
that the relentless rise in the housing market faltered as general
economic slowdown combined with fears of war to see a small price
decline in London and the South East especially.
In contrast to the slowdown in price rises, the number of homes
being put up for sale jumped sharply in January, far exceeding the
usual post Christmas/New Year increase.
RICS housing spokesman Ian Perry, said: "Predictions of a market
slowdown appear to have been correct, as the effects of the
slowdown ripple out from London.
"Last week's 0.25% interest rate cut may steady nerves, but we do
not believe at this stage that it will counteract the negative
impact of another war in Iraq or the general feeling of economic
uncertainty."